The No. 1 concern among clients, according to RIAs, is a recession (33 percent), up 7 percentage points from the previous quarter and replacing volatility for the top spot, according to E*TRADE Advisor Services Independent Advisor Sentiment survey.
“Advisers are focusing on the fundamentals of our economy, which are on relatively solid footing despite how late we are in the bull market run,” said Matt Wilson, head of E*TRADE Advisor Services. “Amid the recent market volatility, advisors can really demonstrate their value to clients — shoring up defenses in client portfolios, helping them understand the bigger picture and encouraging them to stay focused on their long-term goals. Advisers play a critical role in helping clients navigate not only the immediate challenges the market can present but also what the market could bring in the months to come.”
Other findings include advisers saying the biggest mistake clients make is trying to time the market (43 percent), consistent with the previous quarter’s findings.
And while clients appear less concerned about volatility, advisers remain focused. Volatility is the No. 1 risk that RIAs are actively managing in client portfolios, followed by interest rates (56 percent) and a flattening/inverted yield curve (43 percent).
Advisors are eyeing IT above all other sectors. Advisers noted that sectors with the most opportunity for their clients in the next few months are information technology (53 percent), healthcare (43 percent) and financials (34 percent), consistent with the previous quarter.
The survey was conducted in-house from July 16 to July 29, 2019, among a convenience sample of 305 independent RIAs.
